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Learn · Glossary

DDP

The only Incoterm where the seller clears import and pays duties and taxes; the maximum obligation for the seller.

Also: Delivered Duty Paid

DDP puts almost everything on the seller: transport, insurance if it wants any, export and import clearance, duties and taxes, until the goods are at the buyer’s disposal at the named place, not unloaded.

It sounds comfortable for the buyer, but it has traps: the seller must be able to act as importer in the destination country and recover the VAT there, which it often cannot. Many forwarders recommend DAP and leaving customs to the buyer.